First Equity Limited – COMMENT
Arkle Resources plc (ARK.L)*
25 February 2025
• Arkle Resources plc: (ARK.L)
• Listing: AIM
• Market Cap: £2m
• Mid Price: 0.35p
• FE Rec: Buy
• Target Price:1.35p
Lithium & Magnesium Discoveries in Botswana
Arkle Resources plc (ARK.L) has this morning reported lithium was found in all 20 samples taken during a preliminary regional sampling programme on its Makgadikgadi Salts Pans project in Botswana.
Along with finding higher levels of lithium than in other areas, significant grades of magnesium above 1% were identified from 8 samples, which the management believe could be extracted by using the new process of Direct Lithium Extraction (DLE).
The next work planned will be shallow drilling to 30 metres to access brines to obtain a bulk sample analysis for DLE.
The complete RNS, including the lithium and magnesium grades from all samples can be accessed via the button link below.
FE Comment: – These are very encouraging results, with the bonus upside of a magnesium mineralisation find, a metal which is designated as a “critical material” by the US administration. Along with these results and given the potential application of DLE technology and vast expansive 937 sq. kms licence area, Arkle could be well placed to attract a JV project partner to help accelerate exploration.
The market cap remains at only around £2m. This is despite last week’s small share price rally, which we believe is due to a ‘read across’ event reaction to news of C$2.5m being secured in an upsized (from C$1.5m) funding on the Canadian TSX market by Group Eleven Resources Corp, who are Arkle’s JV partner at Stonepark in Ireland.
First Equity continues to recommend Arkle Resources as a ‘Buy’ with a target price of 1.35p per share, which could soon be revised upwards upon further progress at Makgadikgadi.
